VRM - Vroom defended by BofA for long-term potential after earnings slump

Bank of America drops its price objective on Vroom (VRM) after taking in the Q3 earnings report. "Overall a solid quarter with a step forward in GPPU, though a 4Q eCommerce unit guide down likely adds uncertainty to 2021 Street expectations for 127% y/y unit growth." The firm remains constructive on the long-term potential for Vroom and reiterates a Buy rating. "We are encouraged with Vroom's ability to accelerate GPPU expansion and see above Street 4Q GPPU guidance as indicative of steady progress towards profitability. While below Street unit growth guidance in 4Q raises execution concern we see a long growth runway ahead of Vroom and at the AH price of $36." Vroom trades at 1X the 2022 revenue estimate vs. Carvana at 3.5X, which leads BofA to call the risk-reward profile attractive. Shares of Vroom are down 12.01% premarket to $35.90.Dig in to more details on Vroom's Q3 earnings

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Vroom defended by BofA for long-term potential after earnings slump